Card holders can withdraw cash from colony stores

The RBI has permitted banks to allow their savings account customers to withdraw up to Rs 1,000 per day at select merchants having point-of-sale (POS) terminals.

Debit card holders will now be able to withdraw money from their neighbourhood stores. The RBI has permitted banks to allow their savings account customers to withdraw up to Rs 1,000 per day at select merchants having point-of-sale (POS) terminals.

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As on May 31, 2009, the country had a total of 4,70,237 POS terminals installed by banks at merchant establishments.

The cash withdrawal facility will be available only against debit cards issued in India. RBI said the facility may be made available at any merchant establishment designated by the bank after due diligence.

The facility is available irrespective of whether the card holder makes a purchase or not. In case the facility is being availed along with the purchase of merchandise, the receipt generated shall separately indicate the amount of cash withdrawn.

Banks offering this facility shall put in place a proper mechanism to redress customer complaints. Banks need to obtain the permission of their boards to offer this facility.